Min (1992) proposed a symmetric Cournot-like oligopoly model consisting of sellers who are profit maximizing EOQ-based decision makers. In this paper Min's 1992 model is extended by means of sensitivity and equilibrium analyses. The primary objective of such extensions is to enhance the general understanding of relationships between critical quantities in inventory theory (such as the order quantity) and in microeconomic theory (such as the number of competing sellers). In particular, for EOQ-based decision making sellers, the effects on each seller's profitability caused by the entry of an additional competitor, as well as the maximum number of competitors the entire market can sustain, are examined.
關聯:
International journal of systems science 26(9), pp.1559-1570
